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Chrome File Edit View History Bookmarks People Window Help * 100% E , Sun 6:03:06 PM Sophia Mekled E 0 connect '-MindTap-Cengac × x ( G aristotelian proofs × Download LockDo × Chegg Study I Gu x Statistics and Pro: x A Final Exam Study , Not Secure l ng.cengage.com/static/nb/ui/index.html?nbld-6014178nbNodeld-21 9841903&eISBN-9781; 337115377#!&parentld-219842227; MINDTAP sophia mekled- Chapter 6 Assignment Due Today at 11 PM EST 4.xercis6.07 Algorithmic Suppose we are interested in bidding on a piece of land and we know one other bidder is interested. The seller announced that the highest bid in excess of 810,200 will be accepted. Assume that the competitor's bid " is a random variable that is uniformly distributed between 810,200 and 815,000 a. Suppose you bid $12,000. What is the probability that your bid will be accepted (to 2 decimals)? o .38 b. Suppose you bid 814,000. What is the probability that your bid will be accepted (to 2 decimals)? 9. 79 10. c. What amount should you bid to maximize the probability that you get the property? 15000 12. d. Suppose that you know someone is willing to pay you $16,000 for the property. You are considering bidding the amount shown in part (c) but a friend suggests you bid " 13. -Select your answer Stay with your bid in part (e); it maximizes expected profit rofit, what is your bid? Bid $13100 to maximize the expected profit 15. What is the expected profit for this bid (to 2 decimals)? 16 Hide Feedback Partially Correct Check My Work APS12e_Chapter19.pptx APS12e.Chapter17.pptx APS12e.Chapter16.pptx APS12e-Chapter15.pptx APS12e.Chapter14.pptx Show All ×

Explanation / Answer

profit = 16000 -x

probability that bid is won

= (x - 10200)/(4800)

hence

profit if bid is won =(x - 10200)/(4800) (16000 - x)

hence

x = (16000 + 10200)/2 = 13100

hence

profit = 1752.083333

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